As a business owner, you’re aware that you always need to have a plan for everything. You need to have a back- up plan for your primary method, and a contingency plan for unpredictable variables. You don’t just focus yourself on gaining profit, but also ensuring that your business is stable and continually growing. You should also be able to prepare yourself for the worst: a lawsuit against your company. It can be quite tricky to deal with business litigation since you’ll be tackling a lot of legal aspects that you may be unfamiliar. So, we will outline you what to consider if you’re going through business litigation.
The best way to tackle lawsuits is to familiarize yourself with the ins and outs of it. You should know what the suit is about and what are your actions that could be grounds for it.
Know what business litigation means
Business litigation occurs when your company and another party are not able to resolve or defend legal disputes. It’s a term that has been used as a name for businesses or corporations that have been accused of commercial misconduct.
Know what are the grounds for commercial litigation
Familiarizing yourself with the different grounds for a possible lawsuit will help figure out how best to deal with it.
Different grounds for commercial litigation:
- Breach of Fiduciary Duty
One of the primary foundations of business is trust, and if you break this confidence and reliance, you’ll be liable. You should accept this trust of faith and do your job with your utmost expertise and discretion.
- Breach of Contract and Tortious Interference
Contracts are legally binding; that’s why you must honor it at all times. You should always fulfill your obligations that have been written in any agreement that you’ve signed. You’re also not allowed to intentionally force someone to breach their responsibilities stated in any contract.
You, your employees, the people dealing with your company, your company’s insurance provider, or anyone that knows your trade secrets, have obligations with each other. A breach of these commitments is against the law.
You Should Know How to Act
You need to be proactive when dealing with legal cases whether you’re considering to file a lawsuit against someone or someone has filed a lawsuit against you.
Hire a lawyer
Unless you’re a lawyer yourself, you should always consult with a business litigation lawyer before taking any action or making a decision.
Reasons to hire a business litigation lawyer:
- You’ll get it right the first time
By doing things on your own, you may end up second guessing what to do. However, having a lawyer will ensure you that every step taken is done in the right direction.
- Time is money
You may think that you’re saving money by doing the process yourself; you’re not. Remember that time is money in business, and if you have a lawyer, your lawyer will be the one to deal with the legal matters.
- You’ll be more prepared
One unresolved issue can result in litigation. This is why having a lawyer from the beginning will prepare you and your company for trial when worse comes to worst.
Make sure your documents are sound
Documents regarding your company and your company’s transactions will play a considerable role during the litigation process.
Make sure that you always keep the following documents:
- Contracts and Agreements
These are documents that bind you and the people you and your company are dealing with.
- Invoices, Receipts, and Quotations
These are documents that prove that you have done your part, made sure that you did all of your obligations and responsibilities, and that you don’t have liability.
Do your research
You should take time to know what you’re dealing with. You should figure out what possible angles that you can work on. Also, getting to know the people that you’re going up against could be very helpful.
Be Ready For Arbitration
There are other options better than going to court, options that might be cheaper and would take less time. One of those options is mediation.
Reasons to mediate instead of going to court:
- You’ll be saving money
The justice system is not a friend to people who are on a tight budget. Arbitrations can be handled at a much lower cost.
- It will be more convenient
When you go to trial, you must submit yourself to the court’s calendar. The judge will not adjust it to you, and you should adapt to the court. Suits can be inflexible, and judges will set the time when they’re available.
- You’ll be saving time
Trials can last for months or even years, while arbitrations can immediately finish if you and the other party involved are able to come to an agreement.
Business litigation is synonymous with commercial disputes, and the aspects covered by the law are varied and complex. As a business owner, people may not expect you to have in-depth knowledge about commercial litigation, but with these essential facts, you’ll be more than prepared.